Agree with LL that it will take something major to shake the government and bureaucrats out of their complacency.
A major crash would certainly do it, but no one wants that.
Action by the FAA (i.e. downgrading Australia to tier 2) would certainly do it. I half expected this to happen - it was being contemplated in 2009, and very little of the PelAir debacle since 2009 could have inspired any confidence.
I don't understand the recent comments about lack of insurance for survivors, Could someone here enlighten me?
If this is the case, then a decision by insurers and other customers not to use Australian registered air ambulances (until such time as this issue is addressed) would cause pain. Pain for Australian operators. Pain for Australians overseas. Pain for people from other countries needing air ambulance services in this region - imagine if the US or Europe recommended that their citizens not be transported by an Australian registered air ambulance.
I suspect this would get this particular loophole (if it exists) fixed. Of course I understand you are talking about a much bigger picture, but at least it would be a start.